What to do if church accidentally paid social security and Medicare on clergy

by Carol
(Austin, TX)

I meet the qualifications as clergy. My church paid me a housing allowance and I requested that they withhold taxes from my check. I realized when I received my w2 that they also withheld security security and Medicare. How is that corrected?

Comments for What to do if church accidentally paid social security and Medicare on clergy

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Jul 16, 2018
Soc Sec
by: Anonymous

If you did not apply for the exemption AND receive an approval letter from the IRS the church IS to deduct SS/FICA taxes.
It is not an automatic that clergy doesn’t pay into Soc Sec.

Jul 16, 2018
Minister Earnings Covered Under SECA
by: Vickey

I am not sure I understand what you are saying in the comment "Soc Sec".

You are correct in that a clergy HAS to pay into social security UNDER the SECA system UNLESS they apply for a receive approval from the IRS to opt out of SS by filing a form 4321. For more information, click on TOPICS at the top of this page and then MINISTER TAXES. Then scroll down to " Opting out of Social Security".

However, if you are stating that a church must receive official recognition from the IRS before they do NOT withhold and match FICA from their minister's earnings ... then I respectfully disagree.

I have read IRS Pub 517 and Topic # 417 and both publications state that ministers are covered under the SECA system UNLESS they have been approved to opt out, so churches (even those that have not filed a 1023 and obtained recognition from the IRS) CANNOT withhold and match FICA with their minister earnings.

Feb 10, 2021
Social security and medicare
by: Anonymous

The church accidentally paid social security and Medicare on clergy before they learned that they do not pay these taxes for clergy. Now what do they no besides to stop paying these taxes?

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